You file a car insurance claim after an accident. The repair bill arrives. Then the settlement amount arrives — and it is noticeably lower. This gap confuses most Indian car owners.
The reason is that car insurance does not treat all parts equally. The treatment of plastic parts, metal parts, and consumables differs significantly under a standard comprehensive policy, and this difference directly affects how much you receive during a claim.
Quick Answer
Under a standard comprehensive car insurance policy in India, metal parts are covered but subject to depreciation deductions based on the vehicle's age. Plastic parts face higher depreciation deductions. Consumable items such as engine oil, coolant, nuts, bolts, and brake fluid are generally not covered unless a consumables add-on is purchased. Zero depreciation (zero dep) add-ons reduce or eliminate depreciation deductions on eligible parts.
How Insurance Treats Metal Parts
Metal body panels, chassis components, and similar structural parts are covered under a standard comprehensive car insurance policy.
However, depreciation is applied based on the vehicle's age at the time of the claim. The older the vehicle, the higher the depreciation percentage deducted from the claim amount.
For example, if a metal part costs ₹10,000 to replace and the insurance company applies a 25% depreciation, you receive ₹7,500 from the insurer and pay the remaining ₹2,500 yourself.
Depreciation percentages generally increase with vehicle age and are defined by IRDAI guidelines. A car under six months old may attract zero or minimal depreciation on metal parts, while a vehicle more than five years old will see significantly higher deductions.
How Insurance Treats Plastic Parts
Plastic parts — including bumpers, headlamp housings, grilles, mirror housings, and interior trims — are treated differently from metal parts and face steeper depreciation under most standard policies.
The depreciation rate on plastic, rubber, and nylon parts is typically higher than on metal parts, regardless of the vehicle's age. This means the out-of-pocket cost for replacing a plastic bumper or headlamp assembly can be significant even after a successful claim.
This surprises many car owners because plastic exterior parts are among the most commonly damaged components in minor accidents and parking incidents — precisely the situations where people expect insurance to help most.
How Insurance Treats Consumables
Consumable items are usually excluded from standard comprehensive car insurance claims.
Consumables include:
Engine oil
Coolant or antifreeze
Brake fluid
Gear oil
Nuts and bolts
Washers
Clips
Grease and lubricants
These items are used during repair but are considered wear-and-use items by insurers. Unless a consumables add-on has been purchased, these costs are borne entirely by the vehicle owner.
In a moderately serious accident repair, consumables can add ₹1,500–₹4,000 or more to the out-of-pocket expense, depending on the vehicle and repair scope.
What Zero Depreciation Covers
A zero depreciation add-on, also called nil depreciation or bumper-to-bumper insurance, modifies a standard policy so that depreciation is not deducted on eligible parts during a claim.
With zero depreciation, you receive the full replacement cost for covered parts — including plastic components — without the age-based deduction.
Zero depreciation is generally available for newer vehicles and is subject to the insurer's terms, including limits on the number of claims per policy year.
It does not automatically include consumables. A separate consumables add-on is needed to cover items like engine oil, coolant, and hardware used during repair.
Common Mistakes Car Owners Make
Assuming all parts are covered equally. Many owners do not know that plastic parts attract higher depreciation than metal parts until after a claim.
Assuming consumables are included. Standard policies exclude consumables. Not purchasing the add-on means paying these costs out of pocket after every claim.
Choosing a policy based only on premium. A lower-premium policy without zero dep may cost more in out-of-pocket expenses after an accident than a slightly higher-premium policy with zero dep.
Not checking add-on inclusions. Zero dep does not always mean everything is covered. Always read the specific inclusions, exclusions, and claim frequency limits before purchasing.
Auto Decode Expert Advice
If your vehicle is under five years old and you use it regularly in city traffic — where minor bumper and plastic part damage is common — a zero depreciation add-on combined with a consumables add-on can significantly reduce unexpected out-of-pocket costs after a claim.
At Auto Decode, we always recommend reading your policy document carefully before an incident, not after. Understanding exactly what is covered, what is depreciated, and what is excluded helps you make better decisions during both purchase and claim time.
Conclusion
Car insurance does not treat all parts the same. Metal parts are covered but depreciated. Plastic parts face higher depreciation. Consumables are excluded from standard policies entirely. Understanding these three categories helps you choose the right add-ons, avoid bill-shock after a claim, and make a more informed insurance purchase decision for your vehicle.
FAQ SECTION
Q1: Are plastic bumpers covered in car insurance in India?
Yes, plastic bumpers are covered under a standard comprehensive policy, but they attract high depreciation deductions. With a zero depreciation add-on, this deduction is reduced or eliminated.
Q2: What are consumables in car insurance?
Consumables in car insurance refer to items like engine oil, coolant, brake fluid, nuts, bolts, and washers that are used during repair. These are not covered under a standard policy but can be covered through a consumables add-on.
Q3: What is zero depreciation car insurance?
Zero depreciation is an add-on that removes or reduces the depreciation deduction on eligible parts during a claim. It means you receive the full replacement value for covered parts rather than the depreciated amount.
Q4: Is engine oil covered during a car insurance claim?
Engine oil is classified as a consumable and is not covered under a standard car insurance policy. A consumables add-on must be purchased separately to include it in a claim.
Q5: Does car insurance cover all repair costs after an accident?
Not always. Standard policies are subject to depreciation deductions on parts, exclusion of consumables, and your policy's compulsory and voluntary deductibles. The actual claim settlement is typically lower than the total repair bill unless appropriate add-ons are purchased.
Q6: At what vehicle age does depreciation stop increasing in a car insurance claim?
Depreciation percentages are defined by IRDAI guidelines and increase with vehicle age. After a certain age threshold, depreciation may reach its maximum applicable rate. Refer to your policy document or consult your insurer for the exact depreciation schedule.
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